Despite the COVID-19 pandemic and the uncertainty of an election year, U.S. equities recovered from their March lows to end the year on a high note based on vaccine hopes. The Dow Jones Index ended up +9.72% and the S&P 500 gained +18.40%.
In 2020, the Dividend Aristocrats (8.68%) underperformed the S&P 500 index (18.40%) by -9.72%, which is a lot.
The table below lists the yearly performance (total return) of the Dividend Aristocrats, the S&P 500, and the difference between the two.
The 10-year total returns are still close but showing a small outperformance with 14.75% for the aristocrats and 13.88% for the S&P 500. Below a chart of the historical performance for both indices.
Despite rallying in the fourth quarter, European equities finished the year 2020 down -2.79%. The S&P Europe 350’s total
return this year would have been a 2% gain were it not for the negative contribution of British stocks (-4.71%).
The European Dividend Aristocrats gained another 1.76% in December after gaining already 8.26% in November. However, the European Dividend Aristocrats closed the year 2020 with a negative total return of -3.79%.
The 10 years annualized total returns of the European Dividend Aristocrats and the S&P Europe 350 are 8.91% for the aristocrats and 7.36% for the S&P Europe 350. Below a chart on the European Dividend Aristocrats and the S&P Europe 350 indices since 2011.
The Defensive Dividend Aristocrats closed 2020 with a total return of +11.32%. The Defensive Dividend Aristocrats are outperforming the US dividend aristocrats (8.68%).
Our International Dividend Portfolio also gained 1.63% (in USD) in November and is now up 9.69% for the year, which is beating the European and US Dividend Aristocrats.
Our retirement portfolio (US) gained another1.15% in December 2020 and ended the full year with a gain of 1.62% which is well above its benchmark, the Invesco High Dividend Low Volatility ETF (SPHD), which ended down 12.71%.
